During the hearing, Sharma told the court that by not giving Indian users the option to opt out of sharing their data with other companies of Facebook, WhatsApp prima facie appears to be treating users with an "all or nothing approach".
"This leverages the social significance of WhatsApp to force users into a bargain which may infringe on their interests in information privacy and information security," he told the court.
Sharma said the government was already looking into the issue and has sent a communication to WhatsApp seeking certain information.
Senior advocate Kapil Sibal, appearing for WhatsApp, told the court that the communication has been received and will be responded to.
The court, thereafter, listed the matter for hearing on March 1.
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